The Bureau of Economic Analysis (BEA) released their initial reading of Q1 2024 gross domestic product (GDP) and reported that the economy expanded by 1.6%, down from the 3.4% growth experienced in Q4 of 2023. While decelerating from the prior quarters growth, the +1.6% growth in Q1 2024 marked the seventh consecutive quarter of positive growth.
Compared to Q4 2023, the deceleration in real GDP in the first quarter was a reflection of slowing in consumer spending, exports, state and local government spending and a downturn in federal government spending. Personal consumption, which makes up more than 2/3 of the GDP, rose by 2.5% from the prior quarter and posted a y/y increase of 2.4%. The Personal Consumption breakdown shows that Goods were down 0.09% while Services were +1.78% and Private Domestic Investment was +0.56%. Within Goods, the reduction primarily reflected a decrease of 0.25% in motor vehicles and parts and a 0.19% decrease in gasoline and other energy goods.
This reading is subject to revisions as more data becomes available. The next release of Q1 GDP numbers will be May 30, 2024.
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